Swedish Economies

Prehistoric Economics of Sweden

Sweden did not begin producing written records until well into the Middle Ages. Despite this, there is ample evidence of its early trade and impact on the wider world. Since its Bronze Age, beginning around 3500 years ago, maritime commerce played a major role in the development of the region. Ancient traders imported bronze and its component materials in exchange for Baltic amber, slaves, furs, and agricultural goods. This period of Swedish history was relatively warm, allowing a wide variety of crops and abundant livestock. Burials from the time show an egalitarian society, with few distinctions between rich and poor.

The Swedish Iron Age, spanning 500 BCE to 1100 CE, is often divided between pre-Roman, Roman, and early medieval periods. Over nearly two millennia, the people of modern Sweden continued their earlier lifestyles focused on farming and trade. Celtic groups brought iron-working to the region, improving not only weaponry but the tools used in daily life. Roman trade mainly reached Scandinavia through the Germanic peoples between their borders. Roman coins and technologies from this time can be found throughout Scandinavia.

Raids and Trade in the Early Middle Ages

The early medieval period marked a high point in Swedish commerce. While many European states grew more insular with the decline of Rome, the Nordic cultures flourished and spread. Their earlier mastery of sea trade opened up routes to the new economic hubs of the world, including Constantinople and Baghdad. These sailors conducted both peaceful trade and violent raids along the coasts and rivers of Europe. Swedes in particular grew adept at sailing down the Volga and Dnieper Rivers to reach the Black and Caspian Seas. The port city of Birka, near modern Stockholm, rose to prominence at this time alongside the island of Gotland.

Farms and the Growth of Merchant Towns

Swedish trade diminished in the later Middle Ages. Merchant towns continued to grow and organize, but they could not compete with the Hanseatic League. The trading town of Visby on Gotland came to be dominated by German interests. This foreign control of trade sparked concerns among the Swedish nobility, who had come to rely on critical imports such as salt. A number of alliances and revolts formed to counter German power in the region. These would have a significant impact on the later politics of Scandinavia.

In rural areas, slavery declined and had all but vanished by the 14th century. This created a lower class of free men and women without land. The arrival of the Black Death in 1350, however, left many farms vacant. In its wake, surviving families were able to claim larger shares of land for themselves. Skilled trades grew more common as society recovered, creating new opportunities for laborers and merchant guilds in urban centers.

The Hanseatic League’s grip on the Baltic loosened over the next few centuries. The Swedish Empire took its place through both commerce and conquest. In the 18th century, Sweden underwent an agricultural revolution facilitated by improved technologies and privatization. Land distribution settled into a crofter or torp system similar to that of Scotland. Under this system, a private landowner divided an estate into smaller parcels, or torps, to be worked by farming families. They were often situated at the fringes of arable land, near the edges of a forest. These crofts could be passed on to the farmer’s children and paid no taxes. In exchange, the farmer provided a certain amount of labor to the village or landowner. This practice continued until 1943.

Modern Economics of Sweden

The 20th century saw a rapid change in the global economy as well as that of Sweden. Unlike much of Europe, Sweden’s neutrality in World War II shielded its infrastructure from the war’s widespread destruction. This left the kingdom in a favorable position for growth and export. Its industries developed in an environment of strong labor unions, low regulations, and extensive public welfare. Income taxes were redistributed throughout society as public benefits, ensuring a general high quality of life.

This prosperity was interrupted by a banking crisis in the 1990s, which significantly set back the economy. It has since recovered and is currently experiencing another boom period. Its major industries include raw materials, manufacturing, and motor vehicles. Agriculture, once practiced by the majority of the population, now employs 2 percent. Industry and the service economy account for the rest at 12 and 86 percent, respectively.

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References

Kent, Neil. A Concise History of Sweden. Cambridge University Press. 2008.

Magnusson, Lars. An Economic History of Sweden. Routledge. 2002.

Myrdal, Janken and Mats Morell, eds. The Agrarian History of Sweden: 4000 BC to AD 2000. Nordic Academic Press. 2011.

Peterson, Gary Dean. Vikings and Goths: A History of Ancient and Medieval Sweden. McFarland. 2016.

Price, T. Douglas. Ancient Scandinavia: An Archaeological History. Oxford University Press. 2015.

Scott, Franklin Daniel. Sweden, the Nation's History. SIU Press. 1988.

Sprague, Martina. Sweden: An Illustrated History. Hippocrene Books. 2005.

“The World Factbook: Sweden.” Central Intelligence Agency, Central Intelligence Agency, 14 Aug. 2018, www.cia.gov/library/publications/the-world-factbook/geos/sw.html.

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